Which feature of a common market differentiates it from a customs union?
A) Harmonization of members' tax rates
B) A common currency
C) A common external trade policy toward nonmembers
D) Ability of factors of production to move freely between members

Question

Quizplus · Accepted Answer

In a common market, labor and capital are free to move because there are no restrictions on immigration, emigration, or cross-border flows of capital between member countries. This is not possible in a customs union.

Which Feature of a Common Market Differentiates It from a Customs